Question
Wildhorse, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,300 from sales $199,000, variable
Wildhorse, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,300 from sales $199,000, variable costs $175,000, and fixed costs $29,300. If the Big Bart line is eliminated, $19,600 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).)
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Eliminate
Net Income
Increase (Decrease)
Sales
$
$
$
Variable costs
Contribution margin
Fixed costs
Net Income / (Loss)
$
The Big Bart product line should be
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